Hm, I can`t imagine that having to play at least 50 BGs or Arenas per week to actually get rewarded is a good way to motivate people.
Plus, you`ll need at least 5 or 6 tokens for a single set of Transmog, and it`s not even going to stay, so you`ll have to play for a month on average to even get a single, one-time use set.
I kinda dislike the weekly Honor reset, but I guess it`s a pretty good way to get people to play more.
I`d probably lower the cost of Transmog Tokens, and add an expensive option to permanently unlock Transmogs, at a higher cost (like, 10 Tokens).
Oh, and I`d definitely reward losses based on the time you`ve spent for a particular Arena/BG. Because if not, it might lead to some degenerate stuff like intentional losses, just to farm Honor quickly.